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NeoStem, Inc. to Enter the Regenerative Medicine Market in Asia
Date:11/3/2008

ough Shandong New Medicine Research Institute and believe the strong strategic fit of the two companies will result in an acceleration of the business model of both companies."

NeoStem also looks forward to assisting Dr. Wang in creating a destination site for individuals looking to receive care outside of their place of residency. The objectives of such individuals, according to The McKinsey Quarterly (May 2008), is to obtain advanced technologies, better medical care than they could find in their home country, quicker access to medically necessary procedures, lower costs for medically necessary procedures, and discretionary procedures. NeoStem believes it could benefit from medical tourism.

"We have already begun to see international interest," stated Dr. Smith, as reflected in the recent Deloitte 2008 Survey of Health Care Consumers which indicates that Medical Tourism is set to explode in growth over the next 3-5 years for people going outside of the United States to seek medical care. According to Deloitte, whereas in 2007, 750,000 Americans traveled abroad for medical care, it is anticipated that by 2010 this number will grow to 6,000,000. Dr. Smith further commented, "NeoStem believes that individuals in increasing numbers will seek safe and effective regenerative medicine therapies abroad that are not yet approved in the United States and many important clinical advances will be in hospitals and clinics outside the United States. We believe that we could gain value from this by including Medical Tourism in the Company's future business strategy in collaboration with Dr Wang."

The consideration to be paid by NeoStem to effect the acquisition is 5,000,000 shares of common stock. This acquisition is subject to the approval of the shareholders of NeoStem, Inc., regulatory approvals, as well as the satisfaction of other customary conditions and is expected to close in the 1st calendar quarter of 2009. The acquisition will be more fully descri
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SOURCE NeoStem, Inc.
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